NATIONAL: Sharp falls in the value of the Aussie dollar have seen home shopping womenswear label Undercoverwear return to onshore manufacturing.
The company has confirmed to trade media that the falling dollar sparked a new costing strategy. Set up late last year, the policy will see the cost of local manufacture compared with offshore options for most key styles before a decision is made about where they are produced.
The strategy means that around 35 per cent of garments are currently made onshore, mainly in non-bulk categories such as printed tops, dresses and winter jackets.
A spokesperson for the company said strong relationships with makers ensured local production could be easily increased to meet demand.
Currency falls were not the company's only woes, with trading levels affected by falling consumer confidence due to the economic slowdown.
The company confirmed a decrease in attendance and spend at its shopping parties – a key sales generation pathway – had resulted in an expected 23 per cent reduction in turnover for the first six months of the 2009 financial year.